Kansas State Treasurer Jake LaTurner requested the introduction of a bill today before the Senate Federal and State Affairs Committee that would allow the State of Kansas to invest State idle funds in Israeli Bonds. Read the full press release below:
“This legislation is an important step in diversifying our portfolio,” said LaTurner. “Twenty eight other states across the country have similar authority and have seen bipartisan support when their legislature weighs in. It is also an opportunity to strengthen a relationship with a long-time trade partner with Kansas that is very well connected in the world of business, agriculture, technology, and healthcare.”
This bill would allow the state’s Pooled Money Investment Board (PMIB) to invest up to 2% of the state’s idle funds in bonds sold by the state of Israel. In the over 50 years since Israel began selling bonds, they have never missed a principal or income payment to their creditors. In the past five years, U.S. sales of Israel bonds have exceeded $1 billion.
Roughly 60 Kansas companies have already begun doing business with the State of Israel, including Aerospace Controls Corporation, Garmin Communications and Penny & Giles Aerospace. Israel currently ranks as one of Kansas’s top 20 trade partners. When looking at neighboring states, Arkansas and Colorado currently have authority to invest in Israel bonds.
The Kansas Legislature has recently shown support for Israel by requiring certain contractors who work with the state to certify that they do not discriminate against the State of Israel.